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HRM and Performance: Achieving Long-Term Viability PDF

275 Pages·2004·7.41 MB·English
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HRM AND PERFORMANCE This page intentionally left blank HRM and Performance .................................................................................................................................... Achieving Long-Term Viability Jaap Paauwe 1 3 GreatClarendonStreet,Oxfordox26dp OxfordUniversityPressisadepartmentoftheUniversityofOxford. ItfurtherstheUniversity’sobjectiveofexcellenceinresearch,scholarship, andeducationbypublishingworldwidein Oxford NewYork Auckland Bangkok BuenosAires CapeTown Chennai DaresSalaam Delhi HongKong Istanbul Karachi Kolkata KualaLumpur Madrid Melbourne MexicoCity Mumbai Nairobi Sa˜oPaulo Shanghai Taipei Tokyo Toronto OxfordisaregisteredtrademarkofOxfordUniversityPress intheUKandincertainothercountries PublishedintheUnitedStates byOxfordUniversityPressInc.,NewYork (cid:1)JaapPaauwe2004 Themoralrightsoftheauthorhavebeenasserted DatabaserightOxfordUniversityPress(maker) Firstpublished2004 Allrightsreserved.Nopartofthispublicationmaybereproduced, storedinaretrievalsystem,ortransmitted,inanyformorbyanymeans, withoutthepriorpermissioninwritingofOxfordUniversityPress, orasexpresslypermittedbylaw,orundertermsagreedwiththeappropriate reprographicsrightsorganization.Enquiriesconcerningreproduction outsidethescopeoftheaboveshouldbesenttotheRightsDepartment, OxfordUniversityPress,attheaddressabove Youmustnotcirculatethisbookinanyotherbindingorcover andyoumustimposethissameconditiononanyacquirer BritishLibraryCataloguinginPublicationData Dataavailable LibraryofCongressCataloginginPublicationData Dataavailable ISBN0–19–927390–1 ISBN0–19–927391–X(pbk.) 13579108642 TypesetbyKolamInformationServicesPvt.Ltd,Pondicherry,India PrintedinGreatBritainonacid-freepaperby BiddlesLtd.,King’sLynnNorfolk ToRogerWilliams This page intentionally left blank Acknowledgements I have happily collaborated for a number of years with a wide range of colleagues in the writing of papers and books. But a few years ago I got the urgetowriteabookjustbymyself,whichwouldreflectmyownpersonalideas about HRM and performance and the factors that, to me, are decisive in shaping HRM policies and practices. I was lucky to find that a number of others supported this idea. Roger Williams,mycolleagueandfriendformanyyears,strengthenedmyconviction that I owed it to myself to write this kind of mid-career book. Our Research School at the Erasmus University (ERIM) agreed that there is some benefit from‘older’colleagueswritingbooks,despitethefactthatasinglepaperinan international refereed journal generates the same amount of credit. Yet,reflectingonthesepasttwoyearsofwriting,Irealizethatitisimpossible towriteabookonone’sownwithoutmajorsupport.Firstofall,Iwouldliketo thank Netherlands Institute for Advanced study in the Humanities and Social Sciences. (NIAS) for granting me a fellowship enabling me to studyandwrite for almostanentireacademicyear.IwouldalsoliketothanktheDeanofour School of Economics and the Board of the Erasmus University Rotterdam, which granted me a sabbatical. Ben Bakker and Frits Gosselink took over the managementofourdepartmentsothatIcouldconcentrateonwriting,andmy teaching was left in the able hands of Marielle Sonnenberg and Wim Blauw. I am very much obliged to all four of them. The staff at NIAS is perfect in ‘pampering’ academicswhowant to concen- trateonacertainarea.Theyarehighlyservice-oriented,yetinaself-conscious way,whichpreventsthemfrombecomingsubservient,averypleasantattitude. Manythankstoallofyou,andmyspecialthanksforPetryKievit-Tyson,Anne SimpsonandSaskiaLepelaar,whocorrectedmyEnglishandcompiledthelist ofreferences.AlthoughatfirstIhadtroublegettingusedtotheatmosphereof silenceanddevotionatNIAS,Isoonsettledin,andbythetimeitcametoleave I felt I could have happily continued for years more. Part of the delight in working at NIAS is derived from the opportunity given during lunch breaks, etc., to converse and discuss with the others. The inspirational ideas from a varietyofacademicdisciplinesandtopicsthatthisgivesrisetoisamazing.My thanks again to all involved. vii Acknowledgements A second group of people I would like to thank are my former Ph.D. students, Ferrie Pot, Keimpe Schilstra and Paul Boselie, who all willingly agreed to collaborate with me on the empirical chapters. Their work is in linewithmyownthinkingonHRM/industrialrelations,andthethoroughness oftheirPh.D.workunderpinsthemoretheoreticalmodellingthatIundertook in this book. Thanks also to my fellow staff members Graham Dietz and Bas Koene for their important contributions. Apartfromthepeoplewhoaredirectlyinvolvedinthewritingofthisbook,a number have played amajor role inthe developmentofmythinkingover the years: Karen Legge, with her distinction of the conformist and deviant innov- ator, and her stress on the necessity to distinguish rhetorics from reality; Lee Dyer,thefirsttomakeapleaforstudyingtheprocessofhowHRMpoliciesand practicescomeabout;andShaunTyson,who,apartfromhisowninspiration, introduced me to awhole range of inspiring academics in the UK during my stay at the London School of Economics and later at Templeton College Oxford.MorerecentlyIlearnedmuchfromspecializedsmall-scaleconferences and meetings organized by David Guest (King’s College, London), Ray Richardson (London School of Economics), John Purcell (Universityof Bath), andmyUScolleaguesatCornellUniversity,PatrickWrightandScottSnell.In the Netherlands I found support and inspiration from my colleagues of the Dutch HRM Network. At Erasmus University Rotterdam we have the luxury of so-called student assistants, who help in every wayone can imagine. In relation to this book, I owealottoMichelleRichelle,who(apartfromthehappyrhythminhername) helped considerably in the finishing and final editing stages of the book. Thanks also to the editing staff at OUP, among whom I am grateful to David MussonandMatthewDerbyshirefortheir patienceandsupport.Finally,Iowe special thanks to my almost lifelong tutor, mentor, and good friend Roger Williams, towhom I dedicate this book. J.P. Rotterdam/Woerden May 2004 viii Contents Appendices xii Figures xiii Tables xv About the authors xvii Copyright Acknowledgements xx 1 Introduction 1 2 HRM and Strategy: Does It Matter? 9 2.1 Introduction 9 2.2 What is strategy? 10 2.3 Implications for HRM and performance 14 2.4 In search of a synthesis and an overview 15 2.5 Classical strategic approaches in the HRM area 21 2.6 HRM and strategy: a multitude of linkages 28 2.7 HRM and strategy: lessons learned 33 3 HRM in its Context: An Institutional Perspective 35 3.1 Introduction 35 3.2 HRM modelling: is context taken into account? 35 3.3 The interaction between HRM and industrial relations 37 3.4 Institutionalism and HRM 41 3.5 Institutional theoryand change 43 3.6 Summaryand conclusions 49 4 A Multidimensional Perspective on Performance 51 4.1 Introduction 51 4.2 Reasons for the increased interest in HRM and performance 51 4.3 Categorizing theories 53 4.4 HRM and performance: what has been achieved up to now? 58 4.5 HRM and performance: missing elements 66 4.6 A multidimensional perspective on performance 69 4.7 Summaryand conclusions 73 Appendices 73 ix

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HRM policies and practices need to cope with the dual responsibilities of providing a firm with the best employees to deliver improved financial performance, and a moral duty to these employees to provide a working environment that is equitable and encourages personal development. Many writers have
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